nije evidentirano

Profitability analysis of commercial banking in the Republic of Macedonia

Commercial banks are the most important segment of the financial system in most transition and developing countries, including the Republic of Macedonia. Their influence in the economic growth and in the overall state of the financial system is crucial, that is why they are the most analyzed institutions in the financial markets. They have a vital role in transforming savings into investment, mediating between the deponents, and the investors, and hereby acting as accelerator of economic growth and wealth. Their influence on the economic growth and prosperity in every country, is the explanation for the very strict both national and international bank regulation. The regulation tends to control and, when possible, to minimize the amount of risks taken by the banks, in order to provide a safe and secure banking system, which will benefit both deponents and banks itself. This paper revolves around the state of the financial system in the Republic of Macedonia nowadays, its historic evolvement and development, its potential risks and opportunities in the future, and its ability to cope with all the regional, and global crisis, that have occurred over the years. A lot of charts, information and comparisons about the banking sector, and each bank will be presented, in order to give a solid picture of the financial system and especially the banking sector, as the most evolved sector in the Macedonian economy in the past 20 years. All the financial ratios for each group of banks will be presented, in order to make some conclusions about the state of the banks, and to give some advices on how to be more efficient and profitable. As one will discover, the Macedonian financial system is different than any other, because of its strength and conservative policies. That is the main reason why Macedonian banks didn’t have major difficulties during the 1999-Kosovo crisis, the internal 2001-crisis, and 2008 global financial crisis. This is why our banking sector is very popular among both financial analysts and foreign investors. It is known for the great participation of foreign banks as investors in the sector, because of its good financial state and results. The main goal of this paper is to reveal the efficiency of the 3 groups of commercial banks in Macedonia: the group of big, middle-sized and small banks, to uncover the characteristics of these groups, as well as their strengths and weaknesses, their results in the past and the expectations for the future. Even though the global financial crisis left no obvious repercussions in the economy, in 2011 the Greek debt crisis occurred, as a new problem and a challenge, not only for the Governor and the monetary authorities, but also for the management of each and every bank working on the territory of the Republic of Macedonia. It opens up a lot of questions about whether the stability and the good financial results of the financial system in general, will be able to overcome this crisis as well.

commercial banks, profitability, profit

makedonski jezik